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Nestlé believes that it can capitalise on a taste for Chinese porridge as part of its expansion strategy in the People’s RepublicLaurie Campbell / Getty Images

Peter Stiff

Published at 12:01AM, April 19 2011

Nestlé has become the latest Western conglomerate to expand into provincial
China, buying a majority stake in a porridge and peanut milk maker.

The Swiss group has acquired 60 per cent of Yinlu Foods for an undisclosed
sum, reflecting a growing trend to move beyond the big cities.

Founded in 1985 and still family- owned, Yinlu is a well-established brand,
particularly in its home southeastern Fujian province.

The agreement follows a pattern established by global players such as PepsiCo,
Procter & Gamble and Carlsberg. Nevertheless, it will have to be
approved by Chinese regulators, who blocked Coca-Cola’s bid to buy